India's second richest man, Gautam Adani, runs Adani Group as chairman. The group is present in several sectors including energy, power and others. The billion-dollar group continues to expand. However, one of its companies, Adani Power, saw a major decline in its consolidated net profit in the September quarter. It declined 50 per cent to Rs 3,297.52 crore compared to a year ago, mainly due to lower income as well as higher taxes.
The company, whose market cap is Rs 2.31 lakh crore, had posted a consolidated net profit of Rs 6,594.17 crore in the quarter ended September 2023, a BSE filing stated. The company explained that there were lower one-time revenue recognition of prior period items of Rs 1,020 crore in the first half of FY25 (April-September 2024) as compared to Rs 9,278 crore in H1 FY24, following the resolution of all major regulatory matters and realisation of outstanding dues from discoms (power distribution companies) in the previous year.
It also stated that the one-time prior period revenue recognition in Q2 FY25 (July-September 2024) was Rs 598 crore, as compared to Rs 2,781 crore in Q2 FY24. The company had higher tax expenses, including deferred tax charge totalling to Rs 1,829 crore in H1 FY25, whereas H1 FY24 had recognition of deferred tax credit of Rs 1,330 crore.
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In the second quarter of the current fiscal, the company had a tax expense of Rs 837 crore as compared to a deferred tax credit of Rs 1,371 crore in the year-ago period. Total income of the company dropped to Rs 14,062.84 crore in the quarter from Rs 14,935.68 crore in the same period a year ago.
S B Khyalia, CEO, Adani Power, said in a statement, "Adani Power has embarked on the next phase of its growth journey, swiftly achieving capacity expansion milestones and securing power supply agreements to ensure long-term revenue stability."
(With inputs from PTI)
